The market appears to be undervaluing the potential of U.S. spot bitcoin ETFs, according to crypto research firm K33 Research.

"It's a buyer's market — prices 'should' have gone up," K33 Senior Analyst Vetle Lunde and Vice President Anders Helseth wrote in a new report.

A spot bitcoin ETF approval should attract "enormous" inflows, creating substantial buying pressure on bitcoin, the analysts said. On the flip side, a rejection would merely maintain the status quo.

"The market is fundamentally underappreciating great news," they noted. 

Grayscale's recent legal win in its ongoing battle against the Securities and Exchange Commission led to a brief 6% market surge before fully retracing as the agency delayed seven spot bitcoin ETF proposals from BlackRock, Fidelity, VanEck, …